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 In July, Trump announced a
$12 billion aid package to help farmers hit hard by tariffs on
crops. The government will dole out about $6 billion in relief to
help farmers weather trade wars.
Farmers can apply once their harvest is complete and they know their
production numbers for the year. The United States Department of
Agriculture said wheat, livestock, and dairy farmers have already
received some of the money. However, soybean producers, who will
receive many of the direct payments. have not applied since their
harvest season is not completed.
In a July 24 report, CBS News said “Aid will come in three ways: (1)
Direct payments to farmers who have been hurt by escalating trade
tensions, (2) a food purchase program, in which the government will
buy unsold food and distribute it to food banks, [and] (3) a program
in partnership with the private sector to create new export markets
for American farmers.”
In August, the USDA provided more details on how these programs will
help farmers. Their Farm Service Agency is managing a “Market
Facilitation Program” which will “provide payments to corn, cotton,
dairy, hog, sorghum, soybean, and wheat producers.”
The USDA’s Agricultural Marketing Service is managing “a Food
Purchase and Distribution Program to purchase up to $1.2 billion in
commodities unfairly targeted by unjustified retaliation.”
The Foreign Agricultural Service’s Agricultural Trade Promotion
Program will provide $200 million which will “be made available to
develop foreign markets for U.S. agricultural products” [and] “will
help U.S. agricultural exporters identify and access new markets and
help mitigate the adverse effects of other countries’ restrictions.”
American Farm Bureau Federation President Zippy Duval is “happy with
the program’’ saying “it will help thousands of farmers who are in
financial binds.
“The administration’s tariff mitigation package is welcome relief
from the battering our farmers and ranchers are taking in the
ongoing trade war. There is no doubt that the tariffs from nations
like China have led to lower crop and livestock prices,” Duvall
said, [and] “The additional burden of tariffs on the goods we sell
to China, Canada, Mexico and the European Union has been more than
many farmers can bear.’
He also said, “Today’s aid announcement gives us some breathing
room, but it will keep many of us going only a few months more. The
real solution to this trade war is to take a tough stance at the
negotiating table and quickly find a resolution with our trading
partners. If we’re going to turn our farm economy around for the
long-term, we need to open more export markets with fair trade
deals, and the sooner, the better.”
The concern over the plan only being a short-term solution is what
has many feeling government payments are not the answer. They would
rather be able to export more of their products.
One who has expressed concern is Tom Schatz, president for Citizens
against Government Waste. In the article, “Reactions mixed over new
Trump farm aid proposal” Schatz said, “Instead of using taxpayer
dollars to bail out victims of President Trump’s trade war, the
administration should remove destructive tariffs and begin to engage
in free and open trade, which will benefit farmers and all
Americans.”
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There is some optimism that
the government can negotiate some new trade agreements. Recently,
the United States, Mexico, and Canada have been working on revising
a trade deal called the United States-Mexico-Canada Agreement or
USMCA.
Earlier this month, Illinois Farm Bureau President Richard Guebert
Jr. said, “At a time of falling net farm income, rising expenses,
and market uncertainty, this renamed U.S.-Mexico-Canada Trade
Agreement (USCMA) represents an important and timely step in the
right direction for Illinois farmers.”
The Office of the U.S. Trade Representative has said the agreement
will help to expand markets for agricultural products such as milk,
cheese and other dairy products.
Though the agreement has not yet been approved, there are hopes it
may be approved sometime in early 2019.
One intent is for the program to provide more funding for developing
foreign marketing and step up marketing overseas, which the
agricultural organizations seem to be hoping for.
The program also aims to provide relief to those who have suffered
financially, mitigate the damage caused by the trade wars, and to
enable local producers to receive some of the aid to help them
through.
This complex process is challenging for farmers. It appears that the
day is long past when farmers could simply experience the fruits of
their labors without any government interventions. But the goal of
the present negotiations is to empower the farmers to do their work
with the confidence that our government stands behind the American
farmer.
References
Trump administrations announces $12 billion
“bailout” for farmers hit by tariffs
USDA Announces Details of Assistance for
Farmers Impacted by Unjustified Retaliation
Ag Industry Thrilled, Disheartened by Tariff
Aid Details
Reactions Mixed Over New Trump Farm Aid
Proposal
Statement from the Illinois Farm Bureau
Regarding U.S.-Mexico-Canada Free Trade Agreement
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